Stocks opened higher Thursday on surprising jobs numbers from ADP and word U.S.-china trade talks would resume next month.
Asian markets were flat or closed on the upside while worries over Brexit sent London’s FTSE lower.
The Dow Jones industrial Average opened up nearly 307 points or 1.17%, while the S&P 500 was up 0.93% and the Nasdaq was up 1.13%.
China’s state media reported high-level trade talks would resume early next month in Washington. Vice Premier Liu He spoke by phone with U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin Thursday, the Ministry of Commerce announced Thursday. Lower level talks were expected to begin within days.
The U.S. is in the middle of imposing 15% tariffs on some $270 billion of consumer goods from China and China has retaliated with levies on soybeans, U.S. auto parts and other goods.
ADP reported the U.S. added 195,000 non-farm jobs in August, up 66,000 among small businesses with fewer than 50 employees. Midsize businesses added 77,000 jobs and companies with more than 500 employees added 52,000. The only categories that lost workers were natural resources and mining (2,000) and the information industry (6,000). Education and health gained the most employees (58,000), followed by leisure and hospitality (42,000) and tr4ade, transportation and utilities (39,000).
The Department of Labor reported initial jobless claims for the week ending Aug. 31 were up 1,000 from the previous week’s revised numbers to 217,000, with the four-week moving average 216,250, up 1,500 from the previous four-week average.
In Asia, Japan’s Nikkei 225 closed up 2.12% and China’s Shanghai Composite was up 0.96%. Hong Kong’s Hang Seng was off slightly at 0.03%.
In Europe, the London FTSE was off 0.7% while the pound was up 0.69 percent against the dollar. The German DAX was up 0.78%.
The yield on the 10-year U.S. Treasury note rose to 1.53 percent.